Economic theories:

A) are useless because they are not based on laboratory experimentation.
B) that are true for individual economic units are never true for the economy as a whole.
C) are generalizations based on a careful observation of facts.
D) are abstractions and therefore of no application to real situations.

Economic Theories

Systematic frameworks developed to explain the workings of economic markets, the behavior of economic agents, and the allocation of resources.

Laboratory Experimentation

A research method where experiments are conducted in a controlled environment to isolate the effect of a variable.

Generalizations

Broad statements or conclusions derived from specific instances or limited data, often used to simplify understanding of complex concepts.